KANALCOIN NEWS – Bison Trails and Coinbase Custody have joined the Proof of Stake Alliance (POSA). The alliance’s cooperation is to advocate for the implementation of direct regulations on betting outcomes and other development initiatives. POSA itself is an advocacy group that has been established since 2019. Consists of more than 18 members who are involved in congressional and regulatory discussions to improve environmentally friendly regulations.
They also organize several educational initiative events. Matt Perona, POSA board member and COO at Polychain Capital, said that the organization’s main goal is to change the tax regime. Both mining rewards and stakes are currently taxed in the United States (US) as direct income. This results in a much higher rate than the capital gains tax normally reserved for traditional assets.
“First, POSA works to address how the wagering rewards received by token holders are taxed. Currently, POSA is trying to differentiate the tax treatment of bitcoin mining guidelines thereby risking taxable rewards on asset disposition as opposed to receipts,” Perona said.
New POSA members will help their alliance change the rules. They will because Coinbase and Bison Trails are heavily invested in their influence ecosystem. They provide a means for customers to stake their assets. If according to the white paper draft from Abraham Sutherland, this treatment is unfair.
Because this treatment adds work to tax regulations. POSA also interacts with regulators such as the SEC and FinCEN to work together to resolve challenges related to the regulation of securities and money services. “Meetings with congressional representatives, educate them about Proof of Stake-based technology. Meetings with regulators educate them about the ins and outs of technology,” explained Perona.
The alliance’s educational strategy does not feature any institutions. Currently, POSA is focused specifically on engagement with regulators. “Build an enabling regulatory framework for the growth and adoption of betting-based technologies. Take part in working groups and implement industry-standard best practices,” continued Perona.
Perona also added that policymakers are trying to build a regulatory framework that is conducive to industry growth. “Our members may have these kinds of conversations (with institutions), but POSA doesn’t focus on that. That’s also not the function of POSA,” explained Perona when asked about POSA’s efforts beyond the reach of regulation.
This group of negotiators claims to own two companies that add weight to its mission to advance proof-of-stake industries. Other members of the group also include Tezos, the Interchain Foundation and the Web3 Foundation. While Coinbase is based in San Francisco and one of the largest crypto exchanges in the US. Then Bison Trails is a provider of blockchain infrastructure tools.
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Author: Randy Ntenk
Freelance writers